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China’s CNOOC finalizes buyout of Canadian OPTI (CEO, NXY, OPCDF)

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China's state owned oil and gas producer CNOOC Ltd ( CEO , quote ) said today it has closed the acquisition of OPTI Canada Inc. ( OPCDF , quote ), a Canadian oil sands producer.

The deal was first announced back in July, expanding China's hold on the Canada's oil sands reserves. CNOOC will be acquiring OPTI's 35% working interest in Long Lake along with three other project sites located in the Athabasca region. The reminder of the Long Lake site is owned by Nexe Inc.( NXY , quote ) and is actively operating the site.

The deal structure calls for CNOOC to pay OPTI shareholders $34 million while assuming slightly over $2 billion in debt. OPTI will redeem its entire first lien notes for 102% of the principal plus interest with $525 million in 9% notes due next year and $300 million of 9.75% notes due in 2013.

U.S. shares of CNOOC rose 6.32% to $182.80 or 6.32% intraday trading on the NYSE. OPCDF was up nearly 5% in one of its last trading days.

CNOOC has said it will delist OPTI shares from the TSX Venture Exchange on Thursday.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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